This week the foreign exchange reserves increased again and it crossed the level of $ 610 billion. At present, RBI has enough foreign exchange reserves that it can comfortably pay the import bill for the next 15 months.
One can easily pay the import bill for 15 months.
Foreign exchange reserves: The country’s foreign exchange reserves increased by $ 1.013 billion to a record high of $ 610.012 billion in the week ended July 2, 2021. According to the data of the Reserve Bank of India, in the previous week ended June 25, foreign exchange reserves had increased by $ 5.066 billion to $ 608.999 billion.
According to the Bloomberg report, foreign exchange reserves are very important for the Indian economy. Economic experts say that the Reserve Bank of India is continuously depositing money and FDI coming in the stock market in its contingency fund. This is necessary for the economy of the country amid the Corona crisis. If RBI has sufficient reserves, there will be a positive impact on the credit rating and this will also strengthen investor sentiment. The Indian economy is currently welcoming investors with open arms.
India ready for 15 months import
At present, India is able to import for 15 months. Japan has 22 months of reserves. India has the largest foreign exchange reserves after China, Japan, Switzerland and Russia. Switzerland has the ability to import up to 39 months. Economic experts say that when the country’s economy comes out of the Corona crisis, then imports will increase and for that time this fund is very important.
Bumper jump in FCA
According to the weekly data of the Reserve Bank, the reason for the increase in foreign exchange reserves in the reporting week is the increase in foreign currency assets (FCA), which is a major component of the overall reserves. During this FCA increased by $ 748 million to $ 566.988 billion. Foreign currency assets, expressed in dollar terms, also include the effect of an increase or decrease in the value of other foreign currencies such as the euro, pound and yen held in foreign exchange reserves.
Gold reserves rose by $76 million
According to the data, during this period, gold reserves increased by $ 76 million to $ 36.372 billion. At the same time, the special drawing rights (SDR) with the International Monetary Fund increased by $ 49 million to $ 1.548 billion. The Reserve Bank said that during the week under review, India’s foreign exchange reserves with the IMF increased by $ 139 million to $ 5.105 billion.
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